Microsoft and Sony seem to disagree on the future of game consoles

After "Xbox neXt" appeared as an active project on the LinkedIn
page of Xbox design lead David Gardner, rumors began to swell
that an updated version of the Xbox One could be in the
works.

However, now that doesn't seem to be the case.

On Monday, Microsoft
told IGN that“Xbox neXt was an old internal team
name for a group that worked on releasing Xbox One and is not
related to a future console." That sentiment was also reinforced
at Microsoft's "Build" conference, where Phil Spencer, the head
of Microsoft's Xbox division said:

"I'm not a big fan of Xbox One and a half. If we're going to move
forward, I want to move forward in big numbers. For us, our box
is doing well. It performs, it's reliable, the servers are doing
well. If we’re going to go forward with anything, like I said, I
want it to be a really substantial change for people — an
upgrade."

But Microsoft's biggest competitor in the console space,
Sony, may be singing a different tune. Rumors have been
circulating over the past few weeks
about the imminent release of a PlayStation 4 hardware
upgrade; tentatively called "PS4.5" or "PS4K." The
latter seems more appropriate, as the theoretical console's
marquee feature would be the ability to play games at 4K
resolution. The current PS4 can display photos and video at 4K
resolution, but games are limited to 1080p.

The hardware upgrade would also coincide
with the release of PlayStation VR this fall, and while
upgraded specs would certainly help drive power-hungry VR games,
a mid-cycle console release may cost Sony some of the goodwill it
has enjoyed this console generation. Its pledge of
creating a console "for the gamers" has resonated
enough for the PS4 to have sold over
36 million units in two and a half years. It's unlikely
many of those people will be happy with the idea of paying for a
new console such a short time later.

From Sony's point of view, they wouldn't necessarily have to.
Current PS4 owners would likely only choose to upgrade if they
wanted to take advantage of games in 4K resolution, or if they're
buying a PlayStation VR headset and want the extra horsepower to
drive higher-fidelity experiences.

Releasing consistently upgraded hardware in the same way that
phone and tablet makers release their products would be a pretty
dramatic change for the game console market. Historically,
a game console has been considered a multi-year
investment. For Sony, a low entry price — or a well
implemented trade-up program — could help ease the pain, but it's
yet to be seen whether this new approach will win out in the
long run.